Input tax credit under amended GST law was remitted for fresh decision after hearing the petitioner.

Section 16 of the CGST Act, 2017 was examined in the context of a challenge to denial of input tax credit and to an order passed without hearing. The text notes that the grievance on input tax credit was substantially addressed by insertion of Section 16(5) by the Finance Act, 2024, while other demands had been decided without affording the petitioner an opportunity of hearing. The matter was therefore remitted for fresh consideration under the amended statutory framework, with directions to provide a hearing before a new decision is taken.

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Issues: Whether the impugned order was liable to be set aside and the matter remitted for fresh consideration after affording the petitioner an opportunity of hearing in light of the amended Section 16 of the Central Goods and Services Tax Act, 2017.

Analysis: The petitioner questioned the validity of Section 16(4) of the Central Goods and Services Tax Act, 2017 and sought quashing of the order passed under the Act as well as the notification extending time for passing orders under Section 73. It was also noticed that the grievance regarding input tax credit stood substantially addressed by the insertion of Section 16(5) by the Finance Act, 2024, and that the impugned order had been passed in respect of other demands without an opportunity of hearing. Both sides agreed that the matter could be sent back for reconsideration under the amended statutory framework.

Conclusion: The impugned order was set aside and the matter was remitted to the authority for fresh decision under Section 16 of the Central Goods and Services Tax Act, 2017, as amended, after granting an opportunity of hearing to the petitioner.

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